Company Employee Assessment

6 Management / Key Employee Assessment Yes Is the board of directors composed of mainly officers of the company or related individuals Comments: Is there and independent audit committee Comments: Has there been high turnover of managers and members of the board of directors Comments: Have an unusually high number of key employees left the company recently Comments: Is the company involved in any litigation Comments: 7 No N/A Management / Key Employee Assessment Yes Does the company have offshore activities or bank accounts Comments: Do any of the senior managers have offshore bank accounts or business interests Comments: Are any key employees experiencing financial pressures, such as debts, gambling, medical bills, or divorce Comments: Do any key employees appear to be living beyond their means Comments: Do any key employees have civil judgments or bankruptcies on record Comments: 8 No N/A Management / Key Employee Assessment Yes Do any key employees have a criminal conviction Comments: Do one or two key employees appear to dominate the company Comments: Do any key employees have friends or relatives reporting directly to them Comments: Do any of the key employees appear to have a close association with a vendor Comments: Do any key employees have outside business interests that might conflict with their duties at the company Comments: 9 No N/A Management / Key Employee Assessment Yes Do any key employees own a portion of any company that does business with this company Comments: Has any key employee failed to take vacation Comments: Do any key employees have a significant amount of their net worth invested in the company Comments: Does the company have unusually high debts Comments: Is key employee compensation primarily based on company performance Comments: 10 No N/A Management / Key Employee Assessment Yes Is there an incentive to use inappropriate means to minimize earnings for tax reasons Comments: Is there excessive pressure to increase the company’s st